An investment through a stock could provide benefits in the form of capital gain, capital loss, and dividend. The risk and return by an investment are expected become a unidirectional and linear relation. Basically the stock price is a reflection of company’s fundamental condition which influenced by macro-economic factor so that the stock price is fluctuated. Therefore, in order to minimize the unexpected risk, the investor should make a valuation when making a decision whether to buy or sell the stock.

This research aims to comprehend a stock fair value in Jakarta Islamic Index (JII) in 2010-2014 by Absolute Method and understand how investment decisions should be taken by the investors. The method used is qualitative and descriptive approach.

The stock price as the results of this research counted using Absolute Method shows that, AALI stock, ASII stock, INTP stock, KLBF stock, SMGR stock, UNTR stock and UNVR stock in 2010-2014 averaged is overvalued. Based on calculations using valuation models acquired third nominal fair price different. This is because in each model using basic formulas and assumptions are different. To sum up, the fair value which close to the market price is the result analyzed using Discounted Cash Flows (DCF).